Discount Retail Chain Colruyt (owned by family owned Belgium Colruyt Group) is going one step further with its integration into the agricultural chain. The Belgian soft discount retail chain Colruyt Group wants to buy agricultural land and actively manage it. The crops that are grown on it must be sold in the Colruyt stores as much as possible. It is not the first step that the soft discounter takes to integrate more into the agricultural and horticultural chain. For example, Colruyt bought the sales rights for two new exclusive apple varieties in 2017 and developed them outside of sales organizations. Colruyt has started selling the apple varieties in its stores in direct collaboration with three Belgian growers. A year later, there was a direct collaboration with first nine and later sixteen potato growers. The growers deliver their potatoes directly to Colruyt, in a so-called short chain. The collaboration started with a volume of 6,000 tons of potatoes per year and has now increased to 12,000 tons annually. A little later, the grocer announced a collaboration with various parties in the pig sector for the development of a 100% Belgian organic pork chain. Acquisition of an organic horticultural company In the same year, the discount retail chain went one step further. It bought a 25 hectare organic horticultural company when the owners, who were already suppliers to Colruyt, wanted to sell the company. With this purchase, the chain wanted to help ensure local production of organic vegetables, as well as its own supply of them. Offer locally “An essential element in all these projects is that it is done in collaboration with Belgian, local farmers. After all, as a Belgian player, we want to offer and anchor our offer as much as possible in Belgium and locally, ”Stefan Goethaert told the Flemish news site Vilt.be. Active on the land market The desire to buy agricultural land and manage more is the next step. Colruyt wants to more actively manage the land it already owned, which was bought with a view to possible expansion around distribution centers. In addition, the chain wants to become more active on the land market to purchase new land. Colruyt does not want to enter the market in an aggressive manner for this. “We keep our eyes open and if opportunities arise, we will take advantage of them”, Stefan Goethaert tells Vilt. Diversification and risk spreading in the purchase of agricultural products are indispensable for a retailer Colruyt is looking for farmers who will grow crops on the land for its stores. In the longer term, the chain want to start thinking together with the farmers concerned about how to grow more sustainably, in the field of, for example, the use of water and crop protection products. The purchase of agricultural land will not be the last step in the supermarket's involvement in the chain. “Diversification and risk spreading in the purchase of agricultural products are indispensable for a retailer, crises such as Covid-19 emphasize this even more,” Goethaert told Vilt. Click here for more: https://www.foodagribusiness.nl/colruyt-integreert-verder-in-agroketen/

The Schwarz Gruppe (owner of discounter Lidl and supermarket chain Kaufland) takes over the online marketplace real.de from the SCP Group (present owner of supermarket chain Real). The European Commission has now given merger control approval for this. “The online marketplace will ideally complement our stationary business as a further sales channel. This enables us as a company to position ourselves even more strongly for the future, ”explains Rolf Schumann, Board Member for Digitization at the Schwarz Group. The services of real.de are still available to shoppers and marketplace traders as usual. In addition to a wide range of non-food products with over 300,000 SKUs, customers can choose from over 19 million items from marketplace retailers. In the course of the coming year, the conversion of the online marketplace to the Kaufland name and the expansion of customer and trader services are planned. "We look forward to working with real.de employees in the future, to whom we offer not only attractive jobs but also further career prospects within the Schwarz Group," says Schumann. Real.de is one of the largest online marketplaces in Germany and has many years of expertise and experience in online business. Click here for more: https://unternehmen.kaufland.de/presse/pressemitteilungen/pressemitteilungen-detail.y=2020.m=10.n=realde-wird-online-marktplatz-von-kaufland.html?mkt_tok=eyJpIjoiTVdNMk5UUTRaakJqTldNNSIsInQiOiJlR1MrdFBNS0haVk5SMUNpdWRWMTh1ckl5VEpSRkloK2hcL3o3R054SXczVkJncVQzZVptdXROTzBuZjI5cXp0a29zNWVoUTV5OUxHMWY3bVwvOTN4QWFlRVpZZWhLNjdpdlVZRDA0WVJGcVNpdGMycll5c0E3QU11M3ZXVEdoSmt3In0%3D

Discount Retail Chain Aldi UK (part of Aldi Süd and managed by Austria Hofer) is planning to “jostle for pole position” with the UK’s largest supermarkets with its latest focus on online grocery, according to analysts. The German discounter recently announced plans to invest a whopping £1.3 billion in to modernising its stores and distribution networks, crucially placing a major focus on its fledgling online offering. Aldi has said it plans to open 100 new stores with £1.3 billion of investment by the end of next year, as it revealed sales continued to jump higher and modernising its stores and distribution network, creating 4,000 jobs next year as part of the expansion plan, which is part of long-term plans to grow to a portfolio of 1,200 stores by 2025. The update came as Aldi reported that sales increased by 8% to £12.28 billion (US$ 15.8Bn) and pre-tax profits jump by 49% to £271.5 million (US$ 350Mn) in 2019. After launching a click & collect trial at one of its stores in Loughborough last week marking the first time its grocery items were listed online in the UK, Aldi says it now plans to expand this to a further 15 stores. “That will allow us to garner more information and run a really rigorous trial,” Aldi UK’s chief executive Giles Hurley said, adding that Aldi’s “unique business model and enhanced efficiency can be applied to e-commerce”. According to Hargreaves Lansdown’s senior market investor Susannah Streeter, this could catapult Aldi into direct competition with the UK’s largest supermarkets. “Aldi has been behind the curve on online but it’s now pivoting its model to click and collect and also trialling a delivery service with Deliveroo, both developments which will be key to sustaining its growth given the grocery shift to digital sales,” she said. “Aldi now has an 8% share of the UK grocery market, in fifth position, just ahead of the Co-op and by making this investment into expanding its workforce, it’s clearly hoping to leapfrog Morrisons and eventually jostle for pole position against Asda, Sainsbury’s and Tesco. ’’ Publicis Sapient’s managing partner Julian Skelly added that the looming recession is likely to make Aldi’s new ecommerce proposition even more enticing for consumers. He explained: “Aldi’s online move is a savvy one. As the recession looms likely, Aldi and other discounters are set to benefit.  It is likely that many customers will switch from convenience and choice to focusing more on value for money and cost. “With Click-and-Collect, Aldi are addressing one thing that might hold customers back from switching: the fear of going into a store.  If they can create an offering that works well, customers will return. “Aldi need to work out how to make Click-and-Collect profitable in the long-run. Initially, the focus might simply be on getting a share of the online market that they are losing to the Big 4. “However, they will bear the extra cost of picking and packing the customers’ baskets. Aldi need to think how much, if any of this, can they pass on to the customer?  Aldi need to find a way of doing this efficiently, if they are to stay true to their image of value-for-money.” Click here for more: https://www.chargedretail.co.uk/2020/09/29/aldis-new-online-grocery-expansion-will-see-it-leapfrog-morrisons-and-battle-for-pole-position-in-the-uk/

Discount Retail Chain Lidl's (owned by German Schwarz Gruppe) 10-step success recipe, on the eve of the 10th anniversary of Lidl Bulgaria, explained by Milena Dragiyska, the MD who has been leading Lidl Bulgaria since its entry into the market. 1. The beginning For any company, person or endeavor, the beginning is extremely important and determines a large part of success. For us, the literal start was on November 25, 2010, when we opened 14 stores in 11 cities at the same time, which is an unprecedented practice for the Bulgarian market. But preparations for this moment began three years earlier. Before the opening, we believed that we went through all possible scenarios, there were no unforeseen situations. We woke up with huge queues and if before the opening my fears were that there would not be enough shoppers, then when we saw them waiting in front of the shops, we realized that the real challenge is whether we will be able to meet expectations the shoppers so that they return to us. After this moment of unique adrenaline, everything was functioning as if it had always existed. I believe that our beginning was successful, because in these three years we had achieved something important - we had become a real team, in which everyone was ready to join where they needed help, regardless of their position, so that the work could be done. finish in the best possible way. 2. People People are undoubtedly the key to success up to this day, but every leader and every company has their own reading of how to work successfully with people. My approach is direct communication with employees at absolutely any level and I dare say that this more direct, personal and immediate approach gives me the most accurate daily feedback on the company's pulse. I am glad that I can draw it from direct contact with people all over the country. At Lidl Bulgaria, the foundation of the relations with the employees, the clients and the partners is honesty. Being honest means doing what you say and saying what you believe, no matter who you talk to. It seems simple, but for honesty to be a constructive force, many qualities are required - courage, good upbringing, competence, ability to listen and understand, desire to do the right thing and change the environment for the better. Only in this way does honesty build trust - both in leaders and in brands. 3. Trust Trust is above all a huge responsibility. To be a successful leader, you must first educate and build resilience to live with this responsibility, and not just from 9 am to the end of the working day. Honesty, competence and perseverance are the "three pillars" on which trust rests. Lidl Bulgaria was the last of the large grocery chains to enter the market and we had to earn the trust of our customers in a highly competitive environment. We had something to offer - a new and different model of shopping. But how do we provoke people to take the first step towards us and trust us without knowing us? In addition to being honest, we had to be innovative to provoke their interest and make them notice us. 4. Innovation In order to lead to success, innovation should not be an end in itself. For us, it is an organic part of the DNA of both the company and the team. You may be wondering if it is possible? And the answer is a resounding yes. The specific business model of Lidl, the core of own Private Label brands and distinctive advantage - the best value for money, centralized deliveries to stores in the country from Lidl's own logistics center, the prominent nature of the discounter - this whole set was completely new for Bulgarian consumers and markets. Lidl has developed modern retail for its shoppers in its most complete form and sequence. The innovative business model is successfully complemented by many and innovations in products, processes, in production technologies - developed together with our suppliers, in advertising communication and our overall responsible and consistent approach to everything. Here I will illustrate with a few examples, giving only a few of the dozens of examples in various fields - for example, we were the first retail chain to launch a TV commercial, we were also a pioneer in offering themed weeks. Together with our partners - Bulgarian producers - we have developed and introduced a number of product innovations such as sausages without mechanically separated meat and the Clean Label series - an innovative series of sausages without artificial preservatives, colors and flavors, which gave a positive impetus to market development. There are many employer practices - we were the first employer in this industry to introduce electronic reporting of working hours and the first employer, who announced in an advertisement the exact starting salary for cashier-sellers in Sofia and in less than 2 weeks we received over 3,000 CVs. And this was not only because of the high salary level, but because the way we addressed them corresponded to our clearly stated values ​​- transparency and honesty. Being innovative and moving the market forward is part of Lidl's global identity, making us the number one grocery chain in Europe. 5. The model From the very beginning, Lidl's driving force has been a new, democratic shopping model based on the belief that high quality can and should be widely available. The way to do this at Lidl starts with developing and establishing our own Private Label brands, which are not inferior in quality to the leading and already established brands and at the same time are at very good prices. Therefore, we can rightly say that in Lidl you do not choose between price and quality, but you get both. 6. Processes If the model is the backbone of the business, then the processes are the main arteries. With us at Lidl Bulgaria, they are a guarantee that we will keep our main promise to customers and offer high quality at good prices, investing the funds saved from process optimization in lowering the final price of the products. For this purpose we work side by side with the Bulgarian producers, we help them to modernize their production, to make it as efficient as possible and at the same time we exercise strict control over the full cycle - from the choice of raw materials to reaching the products on the shelves. The right processes are also key to developing a sustainable business without wasting natural resources and paying attention to environmental protection - something extremely important not only for today, but also for our tomorrow. 7. Crises Crises are a real stress test that shows crystal clear the health of the business, both breakthroughs and strengths, the ability to react quickly and the coefficient of adaptability of people and processes. During social isolation, we were at the forefront. Fortunately, we did not have to stop, but we had to change our plans and the way we worked at great speed, but also to provide maximum protection for the people. I think that we have dealt both with the shoppers, not allowing essential goods to be missing and ensuring good organization in compliance with all hygiene measures, and with the employees who received from us the most important thing during the crisis - security in uncertain times. For me, a good leader is the one who takes the next step and turns the crisis into a positive impetus for the company's development by removing the redundant, optimizing to the necessary and maximally unlocking the team's creative potential for non-standard solutions, extremely important for success in today's world. 8. The numbers For business people, numbers are an universal language, I am no exception and I rely on them a lot, but on one condition - when they are the result of stable processes, clear vision and sustainable values. For 10 years there are thousands of figures indicative of the growth and stability of Lidl Bulgaria. Even if I want to, I can't list them, but I will mention only a few of the most key ones as an illustration of the vision behind them. For 10 years the total amount of our investments in Bulgaria exceeds BGN 1 billion (US$ 0.6Bn). Our stores from 14 in 2010 are now 102 in 48 cities. Our team has increased tenfold and from 300 people with whom we started the business, today we are 3,000 and continue to grow. It is no secret that our pay is among the highest in the industry. 75% of the people in management positions in Lidl Bulgaria have risen from the inside, and every year we invest a six-figure sum in training and qualification. In 2019, we put into circulation goods from Bulgarian producers worth BGN 350 million (US$ 209Mn), which is equal to 67% of all our costs for products, and the export of Bulgarian goods in the European network of Lidl for the same year exceeds BGN 40 million (US$ 24Mn), which is a 33% increase compared to 2018. Two of my favorite numbers - 86% of Bulgarians approve of all products from Lidl's own Private Label brands, 96% approved Lidl's ice cream (produced by Bon Gelati and owned by Schwarz Produktion GmbH) - this is shown by the results of a nationally representative taste test conducted among 4,000 respondents across the country. 9. The goods The substance leader is the one who strives to change lives for the better, and this applies equally to people and companies. Lidl's vision is very clear in this regard - with everything we do - from the products we offer, through the initiatives we support to our relationships with people and our position in society - we strive to change our lives for the better. Every year we conduct a large-scale study of the criteria for a full life of the Bulgarian, so that we can, based on the results, refine our activities. Our priority as an employer is to ensure an optimal work-life balance through a variety of policies and initiatives. For us, this is a value that enables people to feel satisfied and happy. Our biggest socially responsible initiative "You and Lidl for a better life" clearly states with its name what we strive for - step by step, I believe that the causes behind the numbers are the ones that remain after us and they are worth working for. And these are not empty words, but content that gives density to success. 10. Gratitude For me personally, the ability to sincerely and deeply feel gratitude, and not as a superficial gesture of upbringing, is a supreme value, and I firmly believe that without it, long-term success is impossible. People and companies who fail to feel grateful are the ones who most easily reach complacency and stop developing. Click here for more: https://corporate.lidl.bg/medien-cent-r/pressreleases/2020/lider-na-fokus-10-st-pki-po-p-tya-k-m-usp

Discount Retail Chain Aldi is launching its first ever Dutch TV campaign, which should show how attractive the 'always modest discounter' is for consumers. In the campaign the slogan 'of course you do!' ('Natuurlijk wel!') is frequently forwarded. 'You say quality, you say Aldi. Of course you do. Tasters choose Aldi? Of course you do,' says the voice-over in the TV commercial. The campaign was developed by the Indie advertising agency in Amsterdam. The originally German supermarket chain has 500 stores spread across the Netherlands. Simplicity is still the central theme within Aldi, who claims to be the founder of discount, without making concessions to the quality of the products. So high quality and the best price, according to the discount chain. The new campaign should reinforce this idea to Dutch shoppers. Nienke van de Streek, MD marketing and communication Aldi Netherlands, says: 'With this campaign, we show the enthusiastic and proud mentality of our company. Quality does not have to be complicated or expensive. Aldi helps shoppers save time, money and unnecessary hassle. Many Dutch people still have an old-fashioned image of simplicity that equates to less at Aldi. With this campaign we want to remove prejudices about Aldi and surprise the Dutch. ' The campaign was launched today on the Aldi shop floor, in the national newspapers, online, on radio and - for the first time in Aldi's history - on Dutch television. Click here for more: https://www.youtube.com/watch?v=-pBiQDmJve0&feature=youtu.be

Discount Retail Chains were born in Western-Europe, more precisely in Germany with brands like Aldi and Lidl. After their foray into the retail business, multiple other grocery discount formats were initiated (e.g. Plus, Penny, Biedronka, Eurospin, MD, Netto, Todis, Tokmanni, Leaderprice) and registered their greatest expansion between the 90s and the early 2000s in Western Europe. After the big boom that discounters registered in Western-Europe, the format arrived in Latin America during the last decade. Despite the fact that only 10 years have passed since this idea that broke the way of shopping in the region, its success is indisputable, since there are more than 4,800 stores of this type in Latin America today, according to information from Nielsen. When analyzing which are the countries in the region where there is a greater presence of discount stores, it is evident that Colombia is ahead with 2,550 stores from three different companies: D1, Justo y Bueno and Ara. After the local market there are Argentina with 990 Dai stores, Brazil with 880 Dai stores, Peru with 450 Mass stores and Tutti stores, according to Nielsen data. The rise of discounters is clear in the region. However, Giovanna Márquez, Nielsen's vertical director of retail for Latin America, highlighted that "Colombia and Peru are the countries in the region where the discount format is clearly present." The Contrasts Giovanna Márquez Vertical Director of Retail at Nielsen for Latin America mentioned “the neighborhood stores continue to be the most important channel in the region, less so in Chile, where the modern channel weighs more. Latin America is strong in this channel due to the size of its middle and lower class.” The number of stores in Colombia is a sign that this market is attractive for discounters. According to Fernando González, president of D1, “the trend of local discount models is not exclusive to Colombia. It is a worldwide trend. Although it is true that in Colombia, compared to the rest of Latin American countries, it has a greater number of operators and its impact on the market is greater than in the rest of the countries.” The favoring of the impact of discount stores is due to urban planning in Colombia, which is based on proximity rather than attraction. This favors penetration, said González, who also assured that “the market share of the discount channel in Latin America is around 7.2%, while Colombia closes the year with a participation in households of over 20%, according to a report of Kantar World Panel.” Another factor that draws attention when analyzing how discounters have fared in the region is that, for example, the three chains that are present in the local market have 11% of consumption in Colombia. This draws the attention of experts, since it is a young format in relation to others in the country. Despite the boom that discounters have had at the regional level, “these formats are a version 1.0, where their main value promise is low prices. We have seen in Europe that these types of stores were born in Europe with that idea, but over time they have developed to such an extent that they offer consumers an experience ”, said Márquez. The Colombian retail business, in addition to showing good performances for discount formats, is also attractive to retail business in general, thanks to sociodemographic factors and its economic performance, according to a study by the US commercial real estate services company Jones Lang LaSalle (JLL). According to the report published by the company, “Colombia has a low commercial penetration rate, which represents an opportunity for the sector, hand in hand with the sustained growth of its middle class (16.3% in 2002 vs. 30, 9% in 2017), the concentration of population in urban centers, the advances in connectivity and logistics efficiency and the historical macroeconomic stability.” Colombia is not the only attractive country to invest in the region, since Cash and Carry models and hypermarkets are focused on increasing their presence in Brazil, Argentina and Mexico, where, according to a recent analysis by Kantar World Panel, it concluded that the formats that grow the most in Latin America are e-commerce (203%), wholesalers (13%) and pharmacies (12%). Next to the other channels such as hypermarkets (8%), traditional (6%), discounters (5%) and supermarkets (5%) also showed interesting growth last year compared to the behavior they reported in 2018, according to Kantar. The countries that register the highest consumption in the retail sector According to Nielsen, Brazil and Mexico are the Latin American countries that register the highest consumption in retail. According to Márquez, this is because trade is a reflection of the GDP of each country, so both nations, being the largest in the region, are those with the highest consumption. In addition to the above, the expert pointed out that the neighborhood store continues to be the most important channel at the regional level, less so in Chile. Latin America is strong in this channel due to the size of its middle and lower class. Click here for more: https://www.larepublica.co/globoeconomia/el-formato-de-discounters-suma-mas-de-4800-locales-en-los-paises-de-la-region-2977847

Discount Retail Chain Aldi France is going big. Aldi is the revelation of the year in France with titanic media efforts, first TV ads and new postures. In 2019, Aldi France raised its advertising spendings in France by 5,166% over one year, to € 70.9 mn (US$ 82.5mn) according to Kantar Media. A trend amplifies in 2020 with € 114 mn (US$ 132.6mn) already invested over the past nine months, including € 55mn (US$ 64mn) in radio and € 40mn (US$ 46.5mn) in television. Not only has Aldi become a more important advertiser than BNP Paribas, Lancôme or even Accor in 2019, but it is now also present on the most powerful advertising medium. Accompanied by Ogilvy & Co, the German hard-discounter came there to proclaim in a one-minute clip its ode to the “new consumer” target group. We see a bunch of millennials playing with a cart. Then abandon it. "The hypermarkets, the supermarkets, it's good, isn't it? But isn't it all a bit too big?" Another retail model is possible and available, suggests Aldi's promofilm voiceover.“ Just have to listen more to the next generation." That is why Stratégies (the French Grand Price for Advertiser Strategies) has decided to honor hard-discounter Aldi France for its breakthrough in the media and to award him the prize for announcer of the year at the Stratégies Festival. Click here for more: https://www.youtube.com/watch?v=Ebh4ulK8O0Y

Discount Non-food Retail Stores are flourishing. Nearly 30,000 Dollar stores exist nationwide, exceeding Walmart and McDonald's combined. This is up from 20,000 locations in 2011, according to the Institute for Local Self-Reliance (ILSR). Last year, Dollar General opened 900 stores, while Dollar Tree (which includes Family Dollar chains) opened 276, per November 2018 data from Coresight Research. In 2019, Dollar Tree will renovate a minimum of 1,000 Family Dollar stores and open an additional 550 locations. Dollar Tree's new stores will be located in predominantly suburban areas, while Family Dollar stores will be in more urban locations. Meanwhile, Dollar General plans to open roughly 975 new locations in 2019, surpassing the 900 stores they launched in 2018. The company’s strategy focuses on its location penetration into lower-income cities and rural towns. Today, most Dollar General stores exist in places with populations of fewer than 20,000 residents, miles away from grocery stores or big-box retailers. Dollar General executives also publicly described their core customers as households making less than $35,000, but estimated that nearly three-quarters of the US population live within five miles of one of their stores. Even in today's growing economy, people still exhibit recession-influenced shopping tendencies. According to eMarketer’s retail analyst, Andrew Lipsman, “consumer confidence is actually at a high right now, but since the recession, people have developed and internalized a lot of bargain-shopping behaviors that aren’t going away—at least for certain types of goods.” Indeed, households with income of $20,000 to $39,000 and those with $100,000-plus income account for equal shares of dollar store consumers (21%), according to an Inmar study from July 2018. However, while the economy overall improves, gains have not been shared equally by upper- and lower-income households. "And greater numbers of low-income households that continue to struggle to make ends meet make for a sizable customer base for dollar stores,” Lipsman said. With widening income disparities, it’s not surprising that dollar stores feed more people in the US than grocers like Whole Foods. According to private market data from China Store Guide, grocery sales at Dollar General and Dollar Tree neared $24 billion in 2018, compared with Whole Foods’ roughly $15 billion. The increase in grocery sales can also be attributed to dollar stores’ efforts to provide a greater diversity of goods to their consumers—specifically lower-income customers. According to Dollar Tree CEO, Gary Philbin, the company implemented Snack Zones—a snack section that includes nuts, crackers, chips, granola and cereal bars and apple sauce, among others—in more than 800 stores in 2018, and will continue this expansion in 2019. Similarly, Dollar General introduced healthier food options (including their Good & Smart house brand), meat, produce and refrigerated sections to 450 stores in 2018, and said they plan to expand this initiative to 200 more stores this year. At a mid-2018 conference, Dollar General's CEO, Todd Vasos explained that "[Dollar General’s] core customer is always a little bit behind the curve,” adding, “better-for-you is starting to emerge as a trend." In December 2018, the company said their plans to offer produce and meat in stores in predominantly rural and urban food deserts would, "drive a tremendous amount of traffic." Click here for more: https://www.emarketer.com/content/why-the-american-dollar-store-is-thriving

Discount Retail Chain Grupo DIA will have 500 new franchises in the next three years, as the company updated its franchise management model with the aim of favoring the profitability of its strategic partners, improving its treasury, as well as facilitating the daily store management". As the DIA pointed out in a statement, this new model was presented to its strategic partners this Wednesday through a virtual meeting with 900 franchisees, in which the president of Grupo DIA Stephan Ducharme participated; the CEO of DIA in Spain, Ricardo Álvarez, and the Director of Logistics and Franchises of DIA España, Iván Martín. During the event, Martín pointed out that "the DIA franchise will be the basis for the growth of the company, so we are looking for entrepreneurs who want to be part of this long-term project." Currently, 700 DIA franchises, out of more than 1,300, operate with the new franchise management model, and it is expected that by the end of the year all franchisees will switch to this new model. Among the main measures of the new franchise model are aspects such as the new method of payment of the merchandise by the franchisee, by which he pays once he has received the merchandise; the simplification of costs for the franchisee, who pays a percentage of his monthly billing; a sales incentive system whereby DIA rewards franchisees for the increase in turnover, and payment facilities such as interest-free financing of 50% of the store filling stock, while the other 50% is assumed by the company itself. Click here for more: https://www.expansion.com/empresas/distribucion/2020/09/23/5f6b326de5fdea292f8b461e.html

Discount Retail Chain Netto Marken-Discount (owned by German market leader EDEKA) is the first European food retailer to use a machine-readable packaging system and thus digitize its entire process chain. For this, after winning the German Packaging Award on September 24th, Netto Marken-Discount was also awarded the coveted Gold Award at the German Packaging Award 2020 in the digitization category. With this innovative technology, Netto Marken-Discount succeeds in further expanding its digital pioneering position in the industry environment and at the same time advocating more sustainable recycling processes. Digitization and sustainability have long been an integral part of the corporate culture at Netto Marken-Discount. This year, the German Packaging Prize 2020, the largest European performance competition on the subject of packaging, will be awarded for the first time in the digitization category. Innovative winner: The Gold Award of the German Packaging Prize in the new category is given to Netto Marken-Discount for the digitization and optimization of its packaging system and the entire process chain. With the help of invisible "Digimarc barcodes", which are integrated into the packaging design and - unlike the visible, conventional barcodes - are often printed on all sides of the packaging of Netto private label items, the products can be scanned from every side. This makes the processes along the entire value chain from packaging production, logistics and storage, the checkout and purchasing process to the recycling of packaging significantly faster and easier. Digital recycling At the same time, the "Digimarc barcodes" contain uncomplicated access to detailed product information. This simplifies all steps in the process chain and ensures a more sustainable recycling advantage: The coding contains precise information about the packaging material used, the type of product and its origin. This could significantly simplify the machine sorting from the "yellow plastic waste sacks" in the future. Packaging made of several materials can also be fed into the correct value stream. In storage and logistics, the information is used to digitally control and check the products. The invisible codes also simplify the inventory for branch employees and customers can conveniently access the item information by scanning with their smartphone. The entire process chain is thus becoming more digital and more customer-friendly. "We are delighted with the gold award, which shows our pioneering role for digital technologies in the industry. Our goal is to use digital innovations to simplify work processes for our colleagues and our customers, to further improve the shopping experience for our customers and to improve our product range overall to be more sustainable" says Christina Stylianou, Head of Corporate Communications at Netto Marken-Discount. With the advanced packaging system, Netto Marken-Discount also makes a significant contribution to industrial automation and underlines its more sustainable packaging strategy and customer orientation. And Netto Marken-Discount will continue to drive technological progress in the future: Netto Marken-Discount has already equipped more than 3,000 different own-brand items with the innovative barcodes. By March 2021, all packaging of Netto private label assortment should be provided with the invisible codes. Netto Marken-Discount, with over 4,270 branches, around 78,000 employees, 21 million customers per week and a turnover of 13.5 billion euros, is one of the leading food grocery sector in Germany. With around 5,000 SKUs and a focus on fresh products, Netto Marken-Discount has the largest selection of groceries in the discount landscape. As a premium partner of the free DeutschlandCard, Netto customers benefit from the multi-partner bonus program with every purchase. The assumption of responsibility is part of Netto corporate culture - the trading company focuses on four main areas: social engagement, fair cooperation with employees and suppliers, careful use of resources and the alignment of the purchasing strategy with sustainability aspects. Netto is a partner of WWF Germany: In addition to expanding and promoting the more sustainable private label range, Netto is also working on eight key issues to further reduce its own ecological footprint. With around 5,100 trainees, the company is also one of the most important training companies in the German retail sector and prefers to fill management positions with committed employees from its own ranks. Need support in your Private Label brand strategy, business development or SKU portfolio restructuring please see our DRC Private Label services on: https://www.discountretailconsulting.com/private-label

Discount Non-food Retail Chain Action (owned by PE 3i group) opened its first two stores in Hradec Kralove and Kladno, Czech Republic. This is the eighth country where the company, founded in 1993, operates. Where other companies, partly driven by the corona pandemic, are focusing more on internet sales, Action is looking very carefully at whether it can do something more online. "Every consumer is online nowadays, corona has accelerated this and also to a broader target group", CEO Sander van der Laan says in conversation with dutch online news platform NU.nl. Even so, Action will open another 100 stores in Europe this year, of which only three in the Netherlands. "Last week we had 11 million visitors in the stores, 6 million online. That number is increasing faster than in the stores," says Van der Laan. But you can't order anything on the website, just look. "Until now it is not necessary for us to sell stuff online. It is also damn difficult to get a product that costs € 1.50 (US $ 1.78) excluding VAT, without loss to the customer's home." In mind it is a broad test Until a few months ago, customers in no country could do anything on the website other than just look. "Recently we started a trial with five stores in France with click & collect and recently also with five stores in the Antwerp region", says Van der Laan. Action was hit hard by the corona outbreak in France, Belgium, Germany and Austria in particular. There the 700 shops were closed. "In such a case click & collect can be a solution." In addition, customers order items online, it is collected and prepared for them and they can collect and pay for it at the store. "In the back of our mind, we see the tests there as a broader test." Last year, Action's approximately 1,600 stores had a turnover of € 5 billion (US $ 5.9Bn) and an operating result of more than € 500 million (US $ 590Mn). "That is very profitable in retail," says the CEO who previously worked for Albert Heijn. (see also our post: https://www.discountretailconsulting.com/post/poland-action-poland-profitable-within-2-years-after-market-entry) "This year we will certainly be hit by the corona crisis. In those first months, we turned 50 to sometimes 75% less turnover." Action now has 390 stores in the Netherlands, three more will be added this year. Because of the increasing retail property vacancies there is enough available. "Those are not the retail spaces that we look at. We rather fish in the same pond as discounters and supermarkets, whereby low rent, good accessibility for customers and supplies are leading." A football looks the same in Poland as it does in France The latter also applies to the foreign expansion, this is done from the eight European distribution centers. After the Czech Republic, the expansion drive is not over yet. "At least 5 more European countries will be added, including at least Italy next year. New countries are always cross-border countries," explains Van der Laan. After Italy, Spain, Portugal, Denmark and Switzerland will follow soon. Action may have Dutch roots, but the bulk of the more than 1,600 stores is located across the Dutch border. "The customer is a bit different everywhere, but there is a lot of overlap in the categories and products we sell." Action, for example, sells many office supplies and do-it-yourself items. "A hammer is the same in the Czech Republic or in the Netherlands, a football looks the same in Poland as in France. Of the 6,000 articles and 14 categories that we have in the store on average, 95 percent are completely the same in all countries." Moreover, a company with the name Action can operate anywhere. Click here for more: https://www.youtube.com/watch?v=w3ShL1TvW9s&feature=youtu.be

According to a recent nutrition report of the Federal Ministry of Food and Agriculture, 55% of those shoppers surveyed describe themselves as flexitarians and therefore regularly avoid meat and use animal-free foods. Animal welfare and climate protection play a growing central role as a shoppers' buying motive. Discount Retail Chain PENNY (owned by REWE Group) embraces this trend and, with “Food for Future”, it is the first discounter to present a cross-product group vegan Private Label brand. Under the slogan „Das isst die Zukunft“ (“That eats the future”), the first products are gradually arriving in around 2,200 PENNY stores across Germany. It starts with “vegan hack” and “vegan burger patties” based on pea proteins, which are available immediately and permanently. In October, “Pea Burger” and “Rice Nuggets” will follow in the frozen food area. Based on the packaging design of the products, it is clear at first glance which plant base the products consist of. Need support in your Private Label brand strategy, business development or SKU portfolio restructuring please see our Private Label DRC services on: https://www.discountretailconsulting.com/private-label